After spending much of the spring under significant selling pressure, shares of Reddit Inc. NYSE: RDDT have been roaring back in some style. The stock has climbed more than 50% in just over two weeks, breaking free of its prior trading range and cruising into all-time highs.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Reddit (RDDT) shares have surged over 300% from its 52-week low. One reason why?
Key Points in This Article: Reddit‘s (RDDT) Q2 earnings showed 84% ad revenue growth and a 37% ARPU increase, signaling strong growth potential.
After reaching an important support level, Reddit Inc. (RDDT) could be a good stock pick from a technical perspective. RDDT recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.
Reddit Inc. (RDDT) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Snap's focus on AR, creator tools and premium features gives it a sharper edge over Reddit in the ad tech race.
Recently, Zacks.com users have been paying close attention to Reddit Inc. (RDDT). This makes it worthwhile to examine what the stock has in store.
Reddit's human conversations make it a surprising winner in AI's machine age.
Reddit's Q2 results smashed expectations, with revenue up 78% YoY and robust guidance for Q3, reinforcing my bullish thesis. I project Reddit can reach $5 billion EBIT by 2035, driven by user growth, deepening monetization, and disciplined cost management. Valuation modeling suggests Reddit's shares could compound at 11% annually, reaching $525-550 by 2035, offering strong long-term upside.
Reddit is well positioned for strong advertising revenue growth, leveraging authentic user content, and rising daily active users to attract advertisers with high click-through conversions. A rebound in US consumer sentiment, with its high correlation with ad performance, supports a bullish outlook for Reddit's US ad revenues. It is nice to see management guide for some small operating margin improvements, although that is not the key driver of the stock going forward.
Reddit crushed Q2 expectations with $500M revenue (+78% YoY), $167M EBITDA, and $0.45 EPS versus consensus forecasts, proving skeptics wrong. Reddit became the #1 most cited domain for AI training, monetizing authentic human conversations through $35M data licensing revenue growth. Reddit Answers exploded from 1M to 6M users in one quarter, transforming Reddit from a Google-dependent traffic recipient to a search destination.